Goldman Sachs seemingly can’t make up its mind when it comes to Bitcoin and other cryptocurrencies. After bashing Bitcoin just a few days ago, the firm is now working on a custody service for crypto funds.
A New Goldman Sachs Plan
Financial service providers are at risk of being disrupted and potentially made obsolete by new forms of money. Cryptocurrencies, while far from a mainstream form of money, are often touted as one of the catalysts forcing banks to redesign their entire business models. Only time will tell if Bitcoin and altcoins will ever have such an impact, but banks are slowly turning toward Bitcoin in many different ways.
Goldman Sachs has been one of the banks to lead the charge in this regard. The firm, while not a proponent of Bitcoin by any means, is looking for ways to expose its clients to different cryptocurrencies. Although its first plan of launching a cryptocurrency trading desk may not happen soon, other options are still being explored. The latest idea comes in the form of providing custody services for cryptocurrency funds.
What Does the Plan Entail?
As part of its new business model, Goldman Sachs will hold securities on behalf of the funds themselves to reduce risks for clients. Although no other details regarding this potential venture are known at this point, it is evident that this business model can hold a lot of merit. More specifically, existing crypto firms have also begun to cater to cryptocurrency funds in various ways.
Providing more legitimacy to the cryptocurrency ecosystem will be beneficial in many different ways. Unfortunately, it also seems as though the executive brass over at Goldman Sachs likes to play games in this regard. Their venture into cryptocurrency is often met with derogatory comments issued by other company officials, thus making it very difficult to ascertain what the bank really aims to achieve within this space.
Considering how this latest “venture” by Goldman Sachs has not been officially confirmed by the bank itself, it remains to be seen how much truth there is to the story. Sources close to the matter have reached out to Bloomberg in this regard, yet that doesn’t make these plans any more concrete or legitimate.
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